Definition of TreasuryDirect | American News

TreasuryDirect is a website where individuals, financial professionals, and institutional investors can buy and sell US Treasury Department securities, including savings bonds and treasury bills.

The US Treasury Department launched TreasuryDirect in 2002. People who use TreasuryDirect to buy and sell securities can make these transactions independently without going to a bank, broker or dealer. This can save them money on commissions and fees they would otherwise have to pay to complete these transactions.

Individuals, corporations, partnerships, LLCs, estates, and trusts can create a master account. After establishing the main account, some also choose to open a linked account. In some cases, they can designate a custom account for a specific purpose, like saving for a vacation home. Other types of linked accounts include accounts for minors and conversion accounts for changing definitive savings bonds into dematerialized bonds.

Users can purchase savings bonds on the site at face value. The Treasury sells all other securities through an auction system with competitive and non-competitive bids. In a competitive offer, investors indicate the terms they are willing to accept, including rate, yield and discount margin. A non-competitive offer means that the investor accepts the conditions already established.

Before you can use TreasuryDirect, you must create an account through the website. You will choose the type of account you want to open, complete the application, and set up a password. The app asks for the account holder’s tax ID, state-issued ID, email address, and bank account information.

When you’re ready to start buying and selling securities, log in to your account. The Treasury Department sells treasury bills, bonds, notes, inflation-protected securities, and floating rate notes through auctions. You place your bid through the website. If you have a winning bid, you receive a notification of your new titles in your account. You don’t have to wait for an auction to buy savings bonds, as they are available at face value at any time.

  • EE Savings Bonds
  • I Savings vouchers
  • Floating Rate Notes
  • Goods of treasure
  • Treasury bonds
  • Inflation-protected Treasury securities
  • Treasury Notes

Securities sold through TreasuryDirect are electronic. If you wish to offer a savings voucher as a gift to another person, you can do so by checking the gift box function when you complete the purchase. You must also provide the beneficiary’s full name and social security number, and they will receive an email later confirming their new savings voucher.

Paper savings bonds are still available, but the buyer must use their IRS tax refund to complete the purchase. The beneficiary receives the hard copy of the savings voucher within three weeks of purchase.

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